Hello BP Community - need your advice/help!
My business partner and I are looking to rehab and flip REO properties and were able to secure funding to do so (awesome, right?) The issue that we have is getting into a property that we can rehab and flip in what is considered a relatively hot market. We have seen quite a few REO properties where we enter bids only to lose. I am taking the advice of "sticking to the numbers" and not "getting caught up in emotions" during these bidding wars so that we don't overbid and end up losing our shirts, if you will (BP rehab and flip calculator has been invaluable when it comes to creating safeguards around our offer numbers....). Some of the listing agents in this market also seem to either be overwhelmed (rude attitude) or a bit whimsical (do not return phone calls) as it appears that retail and cash buyers are jumping into their laps like a bear waiting for salmon swimming upstream! We are still pushing forward but would love some advice as to how we should navigate this market. If there are any wholesalers, investor friendly realtors, investors, or others who are familiar with Essex County, NJ (particularly Newark, the Oranges, and Irvington) would be more than happy to hear any advice you are willing to offer.
Also, we are currently waiting to hear back from a bank via the listing agent to see if we won the latest bid on a property. In the interim, there are other properties that seem like very good deals. Should we continue to send out offer letters on these other REO properties or wait to hear from the bank (it's going on a week and don't want to miss out on other potential deals while waiting to hear back from this agent). If we send out multiple offer letters and a few of the buyers approve, can we select the best deal and turn down the others without creating an issue or attaching bad will to our name?
Willing to do the work but at the same time feel a bit stuck as we have yet to secure a property to rehab.
Thanks BP Community!
Well, reo’s are the prime target in most fliiper’s viewpoint, and the volume of reo’s is maybe 10% of what it once was, while there are more people Trying to flip than before......not particularly a great strategy in my opinion.
Wow - thanks for the speedy reply!
Put in many offers. Its a numbers game. If they all accept pick the best one(s).
Hi Ray - thanks for the advice. I think this is the route that we're going to take.
Wayne - appreciate the feedback you provided but think we're going to try our hand at this a few more times. Where there's a will (and an awesome BP Community!) there's a way!
@Guillermo Kennedy Definitely increase the amount of offers you make when there's so much competition. Most of the time, you will get a counter offer instead of an acceptance to your first offer, which makes it easy to back out without "attaching bad will" to your name.
@Andy, thanks for the reply! I will definitely up the ante in regards to making offers. Expecting to report that a deal was secured in the next 10 days. Thanks again!
Hello BP Community!
As promised, I am reporting in 10 days from my latest post. Unfortunately, have yet to secure a deal. Funnily enough, I am more motivated than ever to secure a deal so I can rehab and flip my first property! Here's to getting after it!
Happy to connect!
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